Strawberry Corporation Has a Joint Process That Produces Three Products

Multiple Choice

Strawberry Corporation has a joint process that produces three products: P,G and A.Each product may be sold at split-off or processed further and then sold.Joint-processing costs for a year amount to $25,000.The production level for each product is 10,000 units.Other data follows: Processing Product P beyond the split-off point will cause profits to ________.

A) increase $25,000
B) increase $40,000
C) increase $50,000
D) increase $90,000